What is Binance?

The rapid adoption of cryptocurrency technology led to the popularity of crypto exchanges - platforms where you can purchase, sell, and trade a wide variety of cryptocurrencies.

Binance is one of the leading and largest crypto exchanges in the world with a $76 billion trading volume on a daily basis and over 90 million users worldwide.

This platform allows you to buy, sell, and store your digital assets. Furthermore, you can access more than 350 cryptocurrencies listed and numerous trading pairs.

It may be daunting for newcomers to navigate the world of crypto exchanges. In our comprehensive guide, we will cover everything you need to know about Binance, including “What is Binance and how it works?” “How to create Binance account?” and a lot more!

What is Binance and what are its key services?

Binance is a well-known and widely used crypto exchange where you have the opportunity to purchase, sell, and trade various digital assets, like Ethereum and Bitcoin.

Founded in 2017 by Changpeng Zhao, it has experienced significant growth and has become one of the world’s biggest crypto exchanges. With a user-friendly and easy-to-use interface, low fees, a vast choice of cryptocurrencies, and sophisticated features (such as margin trading and staking), Binance is an appealing choice for beginners and experienced traders as well.

The native cryptocurrency of the Binance crypto exchange is Binance Coin (BNB). You can use it to pay for various services and trading fees within the platform.

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Key services

With Binance, you can benefit from various features, ranging from selling, buying, and trading numerous crypto coins and tokens, storing all your cryptocurrencies in a secure way through the inbuilt crypto wallet to staking different types of cryptocurrencies to earn interest rewards.

Let us take a close look at the key services of Binance:

Spot Trading	You can purchase and sell a wide variety of cryptocurrencies at the current market price.
Margin Trading	You have the opportunity to trade using your borrowed funds to increase your profits.
Futures Trading	The platform allows you to trade cryptocurrency futures contracts with leverage.
Staking	Stake different cryptocurrencies to earn rewards for holding your digital assets on the Binance platform.
Savings	You can have access to savings products, such as flexible, as well as fixed-term savings to earn interest on your cryptocurrency holdings.
Launchpad	Binance Launchpad lets you participate in initial coin offerings (ICOs) and sales of tokens.
Binance Academy	If you are new to the cryptocurrency world, the educational materials of Binance Academy may be useful for you.
Binance Card	It’s a debit card, which enables you to spend your cryptocurrency at merchants that accept Visa.

How to get started? Step-by-step guide

To create Binance account and start trading, take these 4 quick steps:

Step 1: Registering for an account

You can register for your Binance account via the app or website using your email address, telephone number, or Google (or Apple) account.

Step 2: Completing identity verification for your Binance account

You need to complete the identity verification process, aka KYC (find more information about KYC toward the end of the article) for unlocking deposits, withdrawals, as well as trading limits. Usually, it takes several minutes and it’s necessary to provide your ID documentation and complete a facial verification.

Step 3: Buying/Depositing cryptocurrencies

3.1 How do you buy cryptocurrencies?

You can purchase cryptocurrencies on the Binance platform through bank transfer, credit or debit card, or using P2P trading.

P2P trading refers to a peer-to-peer marketplace, where you can exchange crypto directly with other users of the Binance ecosystem. You can use the local currency you prefer, then, set your own price and select from more than 600 payment methods. Furthermore, Binance offers an escrow service for its P2P marketplace, aimed at streamlining and securing your transactions.

3.2 How do you deposit cryptocurrencies?

In case users hold cryptocurrencies in other wallets or platforms, they can easily deposit them in their Binance accounts for trading or just grow their cryptocurrency holdings with Binance’s suite of services on Binance Earn. You can find more details in the deposit/withdrawal guides of Binance.

Step 4: Starting your crypto trading journey

You can embark on your crypto trading journey on Binance through the Spot, Margin, Futures, and Options market. If you have the native token of Binance- BNB, you can use it for paying trading fees and get discounts, such as 25% on Spot and Margin, and 10% on Futures.

Do you want to grow your holdings? In this case, you can explore different products on Binance Earn, like Simple Earn, BNB Vault, etc.

Binance wallet

The Binance wallet is an online custodial wallet that allows you to store your digital assets. Since it’s a custodial wallet, Binance holds your private keys on your behalf. In other words, you have no control over your private keys.

The main features of the Binance wallet include:

Multi-currency support makes it possible to use various cryptocurrencies, like Bitcoin, Ethereum, and Litecoin.
Two-factor authentication aims to increase the security of your accounts.
Withdrawal limits are imposed for the prevention of fraudulent activities.
Binance Smart Chain Support (the blockchain network developed by Binance).
The integration of the Binance wallet with the Binance exchange allows you to move your funds between your wallet and trading account quite easily.

What is KYC?

“KYC” is short for “Know Your Customer” - the process of verifying the identity of customers to prevent any fraudulent activities or financial crimes. In the crypto context, cryptocurrency exchanges and trading platforms take KYC measures to know the identity of those who use their platforms.

It’s considered a standard practice and security measure used by different financial institutions, as well as banks to collect all the necessary information about their clients. In the crypto world, users are usually required to provide their passports or driver’s licenses. It’s essential to detect fraud or any other illegal financial activity.

In case of Binance, identity verification is crucial and it has to comply with KYC requirements, AML (Anti-money laundering), and CFT (Combating-terrorism-financing) regulations.

Users are required to provide their nationality, first name, last name, birth date, home address, city, and postal code. Also, you have to take and upload a photo of your official ID, like a passport or driver’s license. Another requirement is uploading proof of your address from the bank statement or your utility bill.

Final thoughts

Binance is a top cryptocurrency exchange, efficiently combining digital technology and finance to offer both beginners and experienced traders an extensive array of cryptocurrency trading options, advanced tools, and services.

Dedicated to security and innovation, Binance can be an enticing option for you to embrace the crypto trading world.

If you missed our last blog post, catch up here: "What is Trust Wallet and How to install it?" Coming up next: "What is Binance Web3 Wallet?"